08 August 2022

CHANGING HANDS FAST: Speculative Industrial Developments in Southeast Mesa

 Two are always better 

1

The Landing industrial development in Mesa sells for $208M

Real Estate | 5 Aug |

Cushman & Wakefield has advised the joint venture of Martens Development, a Scottsdale-based real estate firm, and Dune Real Estate Partners, a leading New York-based real estate investment firm, in the dispositional sale(s) of The Landing 3, 4 and 5 (“The Landing”), a brand new Class A industrial development totaling 858,901 square feet on over 64 acres along E Ray Rd in Mesa, Arizona.

One of the largest Class A industrial parks in Metro Phoenix, the nine-building, state-of-the-art asset sold in three transactions during the first half of 2022 to a single-buyer for a combined $208 million.


An affiliate of Cohen Asset Management, a premier private real estate investment firm headquartered in Southern California with regional offices in Phoenix, Arizona, Dallas, Texas and Northern New Jersey, acquired the Southeast Valley portfolio by phase (3, 4, 5) between January and June.

The seller was represented by Cushman & Wakefield’s National Industrial Advisory Group (IAG) – Mountain West, including Vice Chairman Will Strong, Senior Associate Greer Oliver, and Senior Financial Analyst Connor Nebeker-Hay. The IAG team was joined by Chairman Adam Spies and Vice Chair Marcella Fasulo of the firm’s NY Capital Markets team. CBRE’s Senior Vice President, Kevin Cosca, provided leasing advisory.

Vice Chairman Rob Rubano and Executive Managing Director Brian Share with Cushman & Wakefield’s Equity, Debt & Structured Finance Team arranged financing for the buyer.    

“A preferred location for high-tech, manufacturing, R&D and e-commerce users, The Landing is 89% leased to a strong, diversified tenant mix, and represents a trophy core asset and an extremely detailed industrial development,” said Will Strong. “Mesa’s strong market fundamentals, together with the project’s exceptional location, quality and financial profile, made this both a superior and rare investment opportunity in a sought-after submarket regionally and nationally. The steady sale of such a significant, high-profile portfolio over months speaks volumes to the consistent outlook of Phoenix’s industrial market.”

 


Clayco breaks ground on Power Industrial in Mesa

Real Estate | yesterday |

Clayco, a full-service, turnkey real estate development, master planning, architecture, engineering, and construction firm, celebrated the groundbreaking of Power Industrial, a four-building, flex-industrial development designed for various end-users and located in Mesa’s Pecos Advanced Manufacturing Zone at the southeast corner of Pecos and Power Road.

“Mesa continues to get inquiries from businesses looking for exactly this kind of building product,” said Mesa Mayor John Giles. “Power Industrial will be a great addition to the quality industrial product in the neighborhood, and we appreciate Newport Commercial’s and Clayco’s ongoing partnership with and investment in the City of Mesa.”

Designed by DLR Group, the single-story speculative development is located in one of the Southeast Valley’s most active areas and will offer 583,955 rentable square feet of industrial space. Developed within Mesa’s “Pecos Advanced Manufacturing Zone,” Power Industrial will have abundant access to water, natural gas, fiber and SRPs 69kV transmission. Recently, the Southeast Valley has experienced tremendous growth due to a robust labor force, access to the Loop 202 interstate, and the Mesa-Gateway Airport’s adoption of Sky Bridge’s Unified Cargo Processing platform, which allows for quicker importing and exporting.

“Newport continues to focus its development on strong industrial and commercial growth markets in the greater Phoenix Valley,” said Brett Shaves, president of Newport Commercial. “We are excited to see this project come to fruition after a year of design and planning. The City of Mesa staff, Councilmember Thompson and economic development have been strong supporters and we are confident that Power Industrial will be a catalyst to the continued growth of the Mesa Gateway area.”

“The investment and jobs that Clayco will bring with their 583,955 square feet for lease industrial space will be a tremendous asset to this already active area,” said District 6 Councilmember Kevin Thompson. “This is exactly what we have been striving for, Power Industrial will make a great addition for the Gateway area, our citizens, and the region.”

Clayco is collaborating with civil engineering firm Cole and structural engineering firm PK Associates to complete construction in March 2023. Located at a key intersection in southeast Mesa, the four buildings have been designed to provide ample parking and amenities for future tenants to maximize their space needs in this fast-growing submarket.

“We are excited to partner with Newport Commercial, Principal and Manncor Realty Advisors on this industrial project in Mesa,” said Todd Peters, Vice President, Industrial from Clayco. “This part of the Phoenix-Mesa Gateway submarket is robust with development and tenant activity for manufacturing and distribution clients. Power Industrial will bring great flexibility to the market and we are thrilled to be working with the City and our partners to make this happen.”

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